United States data centers are consuming more electricity than ever before. In the third quarter of 2024, their power demand reached 46,000 megawatts (MW), a huge increase driven by artificial intelligence (AI) and cryptocurrency mining.
According to forecasts, this demand will grow to 59,000 MW by 2029. Digital services, cloud computing, and AI apps make data centers grow quickly.
Texas leads in data center power consumption, supplying 8,796 MW to these facilities. Virginia follows closely with 6,967 MW, mainly powering cloud providers like Amazon, Microsoft, and Google. These states host the biggest hyperscale data centers. They need a lot of energy to run servers and cooling systems.

The Power-Hungry Digital Boom: What Fuels the Surge?
Three main culprits drive the energy demand of data centers in the U.S.
AI’s Insatiable Energy Appetite
The rapid development of AI is a major factor behind the increasing energy use. AI models require vast computing power for training and operations. OpenAI, Meta, and Google use powerful GPUs and servers, which require constant electricity. AI’s energy use will likely rise as more companies embrace machine learning and automation.
Training large AI models like GPT-4 requires thousands of GPUs, consuming up to 1 gigawatt-hour (GWh) per model. AI chatbots, image generators, and automation tools are increasing electricity demand.
- By 2030, AI-driven data centers could account for 30% of all global data center power consumption.
RELATED: The Carbon Countdown: AI and Its 10 Billion Rise in Power Use
Cryptocurrency Mining’s Energy Drain
Bitcoin and other cryptocurrencies require massive computational power to validate transactions through mining. In Texas alone, crypto miners contribute heavily to electricity demand. Despite price fluctuations, mining operations continue to expand, pushing energy grids to their limits.
Bitcoin mining uses over 120 terawatt-hours (TWh) of electricity each year. This amount is more than what entire countries, like Argentina, consume.

The U.S. accounts for 37% of the world’s Bitcoin mining operations. Texas is emerging as a key hub due to its deregulated electricity market and lower energy costs.
Also, as crypto mining hardware gets better, miners are using liquid-cooled servers. This needs an extra cooling setup, which raises energy use even more. While some mining operations are adopting renewable energy, the majority still rely on traditional electricity sources.
- SEE MORE: The Energy Debate: How Bitcoin Mining, Blockchain, and Cryptocurrency Shape Our Carbon Future
Cloud Computing’s Growing Footprint
Businesses and individuals store massive amounts of data online. Cloud computing providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud operate huge data centers that run 24/7. The rising demand for remote storage, streaming services, and real-time apps means these facilities must use more power.
By 2026, cloud computing workloads are expected to triple. This growth comes from enterprise applications, video streaming, and online gaming. 5G networks and edge computing are increasing the number of smaller data centers. These distributed centers add to the overall electricity demand.
Streaming platforms alone—such as Netflix, YouTube, and Disney+—consume over 200 TWh annually, with a large portion of this electricity coming from data centers. As demand for high-resolution video content, including 8K streaming, grows, the energy needs of these platforms will continue to rise.
Can the Grid Keep Up?
With data center energy needs skyrocketing, utility companies are adjusting their infrastructure and investments. Dominion Energy Virginia, for example, has 40.2 gigawatts (GW) of contracted capacity waiting for connection to the grid—almost double its 21.4 GW in July 2024. This reflects the growing interest in expanding data center operations in key states.
Southern Co., a major utility provider, raised its five-year capital plan by $14 billion. The new total is $63 billion. This increase will help enhance electricity generation and transmission. The company expects over 50,000 MW of additional power demand by the mid-2030s, with data centers accounting for 80% of this increase.
While energy companies prepare for rising demand, some experts warn of potential grid instability. The PJM Interconnection is the biggest electricity market in the US, serving 65 million customers. It expects data center power demand to rise to 26.7 GW by 2029. That’s a fourfold increase. Meeting this demand will require major infrastructure upgrades.
Despite concerns, industry leaders do not see an immediate energy crisis. Some experts argue that increased efficiency in AI and computing could balance demand. However, if data center growth continues at this pace, power shortages could become a real challenge in the coming years.
The Renewable Energy Race
To meet sustainability goals, many tech companies are investing in renewable energy sources. Microsoft and Google have committed to operating 100% carbon-free data centers by 2030. However, the speed at which renewables can replace traditional power sources remains uncertain.

Energy providers are also stepping up. Exelon Corp. plans to invest $38 billion over four years in grid enhancements, including renewable energy projects. However, some experts believe renewables alone cannot sustain the rapid growth of data center power needs.
Hyperscale data centers are increasingly signing long-term power purchase agreements (PPAs) with wind and solar farms. Google, for example, signed a 1.6-gigawatt PPA in 2023 to power its new AI-driven cloud regions. Amazon and Microsoft are also investing heavily in wind and solar projects to offset their growing data center footprints.
The surge in U.S. data center power demand is driven by AI, cloud computing, and cryptocurrency mining. AI training models, high-res video streaming, and global Bitcoin mining are stressing the power grid like never before. Utility companies are spending a lot on expanding the grid. However, it’s unclear if this growth will be sustainable in the long run.
Renewable energy solutions are in development. However, it’s unclear if they can fully meet the growing demand. In the next few years, we’ll see if upgrades to infrastructure and clean energy can meet the rising demand for digital services. If not, power shortages and environmental concerns could reshape the future of data center expansion in the U.S.
The post U.S. Data Centers’ Power Demand Surges to 46,000 MW: What’s Driving the Growth? appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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